Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I dont understand what I did wrong. Please help. Allocating Joint Costs Using the Weighted Average Method Sunny Lane, Inc., purchases peaches from local orchards

I dont understand what I did wrong.
Please help.
image text in transcribed
image text in transcribed
image text in transcribed
Allocating Joint Costs Using the Weighted Average Method Sunny Lane, Inc., purchases peaches from local orchards and sorts them into four categories. Grade A are large blemish-free peaches that can be sold to gourmet fruit sellers. Grade B peaches are smaller and may be slightly out of proportion. These are packed in boxes and sold to grocery stores. Peaches to be sliced for canned peaches are even smaller than Grade B peaches and have blemishes. Peaches to be pureed for use in sauces are of lower grade than peaches for slices, yet still food grade for canning. Information on a recent purchase of 20,000 pounds of peaches is as follows: Assume that Sunny Lane, Inc., uses the weighted average method of joint cost allocation and has assigned the following weights to the four grades of peaches: Grades Grade A Grade B Slices Pureed Total Pounds Total joint cost is $19,000. 1,700 4,000 9,000 5,300 20,000 Weight Factor 3.0 2.0 0.5 1.0 1. Allocate the joint cost to the four grades of peaches using the weighted average method. Round your allocation percentages to four decimal places and round the allocated costs to the nearest dollar. Joint Cost Grades Grade A Grade B 4,231 6,638 X 3,734 4,397 Total 19,000 X (Note: The joint cost allocation does not equal $19,000 due to rounding.) Slices Allocation Pureed W 2. What if the factory found that Grade A peaches were being valued less by customers and decided to decrease the weight factor for Grade A peaches to 2.0? How would that affect the allocation of cost to Grade A peaches? How would it affect the allocation of cost to the remaining grades? Round your allocation percentages to four decimal places and round the allocated costs to the nearest dollar. Joint Cost Grades Grade A Grade B Slices Pureed Allocation 12,939 X 2,724 X 1,532 X 1,805 X Total 19,000 X (Note: The joint cost allocation does not equal $19,000 due to rounding.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial accounting

Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel

IFRS Edition

9781119153726, 978-1118285909

More Books

Students also viewed these Accounting questions

Question

2. Why does email facilitate straight talk?

Answered: 1 week ago